What was the total amount of Mr. Sandless's contract liability (net of current) at the end of 2024?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
ignificant audit findings, and certain internal control-related matters that we identified during the audit.
Muhammad Zubairy, CPA Valley Stream, NY April 1, 2025
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||||
|---|---|---|---|---|
| YEARS ENDED DECEMBER 31 | 2024 | 2023 | ||
| Current Assets | ||||
| Cash | $ | 35,452 | $ | 50,575 |
| Accounts receivable | 41,949 | 49,667 | ||
| Inventory | 8,013 | 8,013 | ||
| Due from related party | 300 | 64,122 | ||
| Total Current Assets | 85,714 | 172,377 | ||
| Property and Equipment-net | 44,492 | 64,898 | ||
| Security deposit | 2,000 | 2,000 | ||
| Total Assets | $ | 132,206 | $ | 239,275 |
| LIABILITIES AND MEMBERS' (DEFICIT) | ||||
| Current Liabilities | ||||
| Accounts payable and accrued expenses | $ | 4,275 | $ | 244 |
| Contract Liability | 57,000 61, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the company's contract liability, net of current, at the end of 2024 was $234,000. This figure represents the portion of contract liabilities that are not expected to be settled within the next 12 months, reflecting Mr. Sandless's longer-term financial obligations. In comparison, the contract liability, net of current, at the end of 2023 was $360,000.
Contract liabilities typically arise from advance payments received for services or goods that Mr. Sandless has yet to provide. The 'net of current' portion specifically refers to the long-term portion of these obligations extending beyond the current year. For a prospective franchisee, this indicates the financial obligations Mr. Sandless has to fulfill in the future related to existing contracts.
It's important to note that a decrease in contract liability, net of current, from $360,000 in 2023 to $234,000 in 2024 could suggest that Mr. Sandless has fulfilled some of its longer-term obligations or renegotiated contract terms. Franchisees should consider this trend in the context of Mr. Sandless's overall financial health and business strategy. Understanding the nature of these contracts and the associated performance obligations is crucial for assessing the company's financial stability and future revenue streams.